Nidhi Company Registration Chennai

Nidhi Company Registration
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Nidhi Company Registration & Advisory

A specialized form of NBFC designed to cultivate the habit of thrift and savings among its members. Operating on the principle of mutual benefit, it allows borrowing and lending exclusively within its member group.

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Core Characteristics of a Nidhi Company

Members-Only Operation

Strictly restricted to accepting deposits from and lending money to its registered members. It cannot deal with the general public.

MCA Regulation

Regulated primarily by the Ministry of Corporate Affairs under the Companies Act, 2013, and is exempted from core RBI regulations governing regular NBFCs.

Strict Prohibitions

Cannot engage in chit funds, hire-purchase finance, leasing finance, insurance, or the acquisition of securities issued by corporate bodies.

Incorporation Pre-requisites

  • 1

    Structure: Must be incorporated as a Public Limited Company with a minimum of 7 Members and 3 Directors.

  • 2

    Minimum Capital: Minimum paid-up equity share capital of ₹10 Lakhs (as per latest Nidhi Amendment Rules).

  • 3

    Naming Convention: The company’s name must obligatorily end with the words “Nidhi Limited”.

  • 4

    Object Clause: The MOA must state the sole object is cultivating thrift and savings among its members.

Strict Post-Incorporation Targets

To maintain Nidhi status, the company must achieve specific statutory targets within a strict timeframe (typically 120 days to 1 year):

Net Owned Funds (NOF)

Must achieve and maintain Net Owned Funds of at least ₹20 Lakhs.

Membership Base

Must acquire a minimum of 200 registered members.

Financial Ratios

Maintain unencumbered term deposits of at least 10% of outstanding deposits. The ratio of NOF to deposits must not exceed 1:20.

Form NDH-4 Declaration

Mandatory filing with the Central Government to officially declare and maintain Nidhi status upon meeting targets.

Navigate Nidhi Compliance with Expertise

Setting up a Nidhi Company requires meticulous adherence to MCA rules regarding capital, membership, and filings. Let our professionals guide you safely through the process.

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